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Payment processing fees are for the maintenance of GoFundMe’s third-party payment processors. For your information, these do not directly go to GoFundMe. However, it cannot avoid payment processing fees. GoFundMe does everything it can to make fundraising easier for campaigns of different causes. Payment Processing Fees Photo from on Unsplash
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By keeping their site safe and reliable, more people rally for its success-hence the donations and, subsequently, the profit. How does GoFundMe make money? It makes money by keeping its platform a safe space for anyone who needs a little help. Many can attest to its constant growth, becoming more accessible to countries worldwide. This crowdfunding platform started in 2010 and has only grown since. However, for GoFundMe, it seems to be working. Relying on donations and the angel donors of each user do not look like a sustainable choice for many business runners. In the year 2020, online fundraisers will probably reach an all-time high. This prompts people to wonder how GoFundMe makes money. GoFundMe is an outlier, charging nothing at all. The range of platform fees for crowdfunding platforms is about 2-8%. This is not to say that each crowdfunding platform charges 5%, though. Keeping it simple, these fees are deducted from each donation someone gives you. These platform fees basically pay for the crowdfunding platform’s basic operating expenses.įor popular global crowdfunding platforms like Kickstarter and Indiegogo, platform fees are 5% of your total raised money. By doing this, they manage to keep their systems up, their people paid, and their business model running. Platform FeesĪ common practice for crowdfunding platforms is to charge a platform fee per (successful) campaign. GoFundMe is a place for people to overcome hardships and become a part of a community they care very much about. This is what makes GoFundMe such an attractive option for people who need help the most.
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However, in making sure they stay afloat, GoFundMe is also open to tips from donors and campaigners.
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GoFundMe waives any platform fees one would expect on a crowdfunding platform. It does this in one major way: first, starting a GoFundMe campaign is absolutely free. GoFundMe may be one of their few ways out of this, so the platform wants to help make a difference. Individuals, families, and communities can have their lives and welfare on the line. Since a lot of fundraising efforts on GoFundMe are for dire conditions, its people know better than to keep Kickstarter’s all-or-nothing business model. On their site, they proudly claim that it is clear to them that “customers deserved every penny they raised through our platform.” How does GoFundMe make money? This, we will tackle in the next section.īefore we get into the specifics, it is recommended if you first be aware of GoFundMe’s philosophy. With the benefits of wide social reach and 24/7 customer service, you still can’t help but wonder.
#GO FUND ME FREE#
Best of all, it is also free of any platform fees. You can also opt to share your GoFundMe links anywhere on social media. Setting up a GoFundMe happens in a matter of minutes, and you can check your fundraiser anytime and anywhere with the GoFundMe app. You can raise money for yourself, a loved one, or for life-changing events. Going back, GoFundMe is a San Diego-based crowdfunding platform that makes fundraising accessible to just about anyone. It is best to note that GoFundMe recommends Indiegogo, but that is because they are partner websites. In trying to jumpstart a business with your colleagues or own your own, you use Indiegogo or Kickstarter. The rule of thumb, however, is that if you need money for medical expenses, volunteer programs, and personal dreams, you use GoFundMe.